KUALA LUMPUR (June 8): Practice Note 17(PN17) company Perisai Petroleum Teknologi Bhd’s creditors today gave their approval to the proposed scheme of arrangement presented by the company.

It was approved by the requisite majority of creditors present at a court convened meeting (CCM) today,  with 88.19% of creditors in favour of the move.

“This satisfies the statutory requirement under Section 366(3) of the Companies Act 2016 which provides that the proposed scheme of arrangement be agreed by 75% of the total value of the Perisai’s scheme creditors present and voting either in person or by proxy at the CCM,” the company said in a filing with Bursa Malaysia.

The scheme of arrangement entails a compromise of the company’s debts, via proposed issuance of new shares in Perisai as well as debt to equity conversion and a capital reduction exercise will also be implemented to offset its accumulated losses as to uplift the company's PN17 status.

Perisai will also enter into bilateral settlement agreements with its respective inter-company creditors to compromise its debt.

Managing director Datuk Izzet Ishak said that the group has reached a major milestone in its debt restructuring program today.

“We are pleased that the approval process went through smoothly and would like to extend our deepest gratitude to the Corporate Debt Restructuring Committee, bank lenders, medium term notes holders and creditors for their understanding and continuing support.

“We have, today, reached a major milestone in our debt restructuring plan which will enable us to progress with our proposed regularisation plan, expected to be submitted to Bursa Malaysia in due course. We look forward to a new beginning, as we re-focus our efforts on rebuilding and sustaining the business,” he said.

Barring any unforeseen circumstances, the scheme of arrangement is expected to be completed by the fourth quarter of this year.

Perisai fell into PN17 status on Oct 2, 2016 after it defaulted in payment of the principal and interest for S$125 million multi-currency medium term notes.